US Politics |OT|

[Machiavellian]

Pyro as Bill said:

the-pi-guy said:

"So you'd hurt your fists, just to damage the person attacking you?"

Pyro as Bill said:

I don't think the tariffs have anything to do with any trade deficit. They're designed to damage the economic capacity of anyone China could quickly and easily control. Like sanctioning Belarus only it's proactive instead of reactive.

The tariffs were based on trade deficits.

the conversation

"Trump’s new reciprocal tariffs have been calculated by taking the US trade deficit with each country, dividing it by total US imports from that country, then halving the resulting ratio and converting it into a percentage.

For example, in 2024, the US imported approximately US$605.8 billion from the European Union, but exported only $370.2 billion, resulting in a trade deficit of $235.6 billion.

Dividing the deficit by total imports from the EU gives a ratio of 39%. The White House interpreted this figure as the EU’s trade “advantageâ€Â and subsequently imposed a “discountedâ€Â 20% tariff on EU products – roughly half of 39%."

So putting a tariff on literally everyone? 

We are paying the higher costs. 

Companies aren't going to let these taxes drive into their profit margins, they're going to extend the costs to us. 

It's a major issue with this kind of taxation scheme. 

Most companies will absorb some or all of the cost temporarily especially if they believe the tariffs are temporary and then Trump will be a hero when prices drop. If he doesn't remove tariffs then it should be easy for the Dems or a never trump Republican to win the next election.

The only way this works is if Trump is willing to back down which then means he would look weak.  You do understand how bad that would look to the Trump administration right.  You believe this will be temporary because you think everyone will just fold but other countries are thinking the same thing.  We fold, we look weak, we come to the negotiation table looking and acting weak we get stepped on.  If we get stepped on than if this administration doesn't like the agreement just like with the USMCA then we have to fend off the next threat.  So no these tariffs will not be temporary, and they will last for as long as Trump is in office.  

There is this dynamic where a business shows profit and losses during their quarterly report.  When a company doesn't meet estimates, or they fall in profit and growth then their stock value falls, and they take a hit.  So, what do you believe happens if they absorb the cost of these tariffs.  It's not as simple as you make it and history shows that no corporations will not absorb the cost.  They will pass it on to the consumer, inflation will rise and once it does, that will set the new minimum price for the market.

What I do agree with you is that after 2 years under these tariffs, what will happen is that the GOP will lose the house and the Senate just like history has proven before.  This will then mean that the Dems will take back the power to exact tariffs without the president being able to use emergency powers to supersede their authority.  Already there is a bill going around which will curb the president power on this front.  If it doesn't get passed now, it well may get passed later.